Social Sciences and History / Unit 15 SSH 1424 short lesson, about 20 seconds
Balancing the Two Perspectives
Captions available
The idea
Keynesians see aggregate demand as the cause of the business cycle and urge active policy against recessions and inflations. Neoclassicals stress aggregate supply, hold that productivity sets potential GDP and full employment returns, and prefer a limited role for stabilization. Keynesians accept a short-run tradeoff; neoclassicals say none exists.
In practice
Active against hands-off.
Where people slip
Both positions voiced; no verdict.
Your place on the trail
Every lesson rests on earlier ones and opens later ones. Tap any to jump.
Builds on
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